There was a serious lack of action today as the market gave back a bit of last week's breakout. All of the indices are in what I like to call "no man's land" -- between their 50 and 200-day moving averages. I call it that because the moving averages are giving conflicting signals. In this case the 50 DMAs say buy while the 200 DMAs say sell. The Dow is the first of the indices to actually touch its 200-day moving average. The average has been resistance the last two sessions.
The Nasdaq and S&P 500 look similar:
Speaking of all these moving averages, the Guppy Multiple Moving Averages (MMA) show a well-trending, bullish short-term group (traders) and a long-term group (investors) in the process of flipping over from mildly bearish to mildly bullish. Bulls will want to see that long term group completely invert and start to spread out, indicating a strengthening long(er) term uptrend. Here's the MMA chart for the Nasdaq:
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Primary | Down | Down | Down |
| Intermediate | Up | Up | Up |
| Short-term | Up | Up | Up |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I'm simply using the indices' relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
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